Insights for Wigan Property Market | Alan Batt Sales & Lettings
The Autumn Budget: What It Means for Our Market
The much-anticipated Autumn Budget took place on 26th November, and after months of speculation about property taxes, we’re pleased to report that the outcome was far less dramatic than feared—particularly for the mainstream market we serve here in Wigan.
Key Changes
The ‘Mansion Tax’
From April 2028, properties worth over £2 million will face an annual surcharge starting at £2,500. This affects fewer than 1% of properties in England—and virtually none in our local market. The widely-speculated tax on homes over £500,000 has been avoided entirely, which should provide relief to those at the upper end of the market who had been holding off.
Income Tax on Rent
From April 2027, rental income tax will rise by 2%. While this will reduce profits for landlords, most importantly these changes aren’t coming into force until 2027 and 2028—giving plenty of time to plan ahead.
What This Means for You
For most of our clients in the Wigan area, this Budget delivered stability rather than shock. There were no stamp duty increases, no council tax revaluation, and no new property taxes on typical homes. The removal of uncertainty is perhaps the most valuable outcome—those who paused their moving plans can now proceed with confidence.
November Market Activity
As expected, uncertainty surrounding the Budget led to a cautious ‘wait and see’ approach in November. All key metrics declined month-on-month and year-on-year, with new listings, sales agreed, and even withdrawals and fall-throughs all recording lower figures.
However, we’ve seen this pattern before. Buyers and sellers were pausing rather than abandoning their plans altogether. Year-to-date, new listings and sales agreed are still both up year-on-year, demonstrating resilience despite nearly a third of 2025 being overshadowed by tax speculation.
Mortgage Rates: Positive Movement
November brought welcome news on mortgage rates, with the Moneyfacts Average Mortgage Rate dropping below 5% for the first time since early September. Currently sitting at 4.91%, we’re seeing:
- Average 2-year fixed rates at 4.36%
- Average 5-year fixed rates at 4.39%
- The lowest 2-year fixed rate now at 3.55%
- The lowest 5-year rate at 3.72%
These are the lowest levels seen since 2022, with lenders competing for business through competitive pricing. The Bank of England held the base rate at 4% in November, but markets are now pricing in a 90% chance of a cut in December, which should further improve affordability.
First-Time Buyers: Improving Picture
According to Lloyds, the typical first-time buyer home now costs 5.9 times average earnings—the lowest since 2015. Combined with falling mortgage rates and rising wages, this represents the most favourable conditions for first-time buyers in nearly a decade.
The average monthly mortgage payment stands at £1,087, which is £259 per month less expensive than typical rental costs—a compelling incentive for those able to raise a deposit.
House Prices
The major indices showed mixed results for November:
- Nationwide: Annual growth softened to 1.8% from 2.4%, with monthly growth of 0.3%
- Halifax: Monthly rise of 0.6%, reaching a new record high of £299,862
- Rightmove: A larger-than-average seasonal drop of 1.8%, attributed to Budget uncertainty
- Zoopla: UK house prices still 1.3% higher year-on-year, showing continued resilience
Looking Ahead to 2026
With Budget clarity now behind us and improving mortgage affordability, we expect to see:
- Gradual normalisation of activity as buyers and sellers return to the market
- Continued improvement in first-time buyer affordability
- Modest house price growth broadly in line with earnings
- Transaction volumes gradually recovering toward pre-pandemic averages
- Further mortgage rate reductions as the Bank of England continues its easing cycle
The OBR forecasts house prices to rise by just under 3% in 2025 and average 2.5% from 2026, with transactions expected to reach around 1.3 million by 2029. These figures point to steady, sustainable growth rather than the volatility we’ve experienced in recent years.
Our View
After months of speculation and uncertainty, we believe the property market has the clarity it needed. For the overwhelming majority of buyers and sellers here in Wigan and the surrounding areas, nothing has fundamentally changed—and that’s good news.
We’re seeing green shoots of recovery in mortgage rates, improving affordability metrics, and renewed confidence returning to the market. The fundamentals remain sound: employment is stable, wages are growing, and household balance sheets are strong.
Whether you’re a first-time buyer taking advantage of improving conditions, a homeowner looking to move up the ladder, or an investor planning your next steps, we’re here to guide you through the market with expert local knowledge and clear, honest advice.
Need advice on your next move? Contact Alan Batt Sales & Lettings today.